Domestic bourses clocked fresh high levels during the week gone by led by broad based buying; specifically in banking, auto, IT and FMCG stocks. Sensex jumped 3.2 percent in the last week supported by the strong gains in heavyweight stocks like HDFC twins and Reliance which lifted bourses to new high. Sentiments remained buoyed as investors cheered over the impressive economic data for July month.
Strong manufacturing PMI data, robust GST collection, revival in auto sales and corporate earnings were the key positive triggers. India’s manufacturing activity witnessed strong growth on the back of improvement in demand and easing of lockdown restrictions. Further, vaccination pace, easing of pandemic situation, lower bond yield and positive global cues supported the market uptrend.
The markets, similarly, tracked positive development in US economic activity. Going ahead, market participants will keep an eye over corporate earnings, COVID situation and economic data.
From a technical standpoint, the Nifty index traded higher consecutively for four trading sessions in the past week and set a new lifetime high at 16349.45. But witnessed some profit booking on the last trading day of the week with Nifty index ending with a marginal loss of 0.35 percent to close at 16238.20 levels. Bank Nifty ended the session at 35,809.25 levels. Overall, the Nifty contract has slipped below the key level of 16,300 and registered a low at 16,225 levels.
On the sectoral front, Nifty IT, Auto and Metal performed well while Media was the top dragger for the week.
For the coming week, we are expecting a bullish move in the Nifty index, a breakout above 16,350 will lead to a fresh rally in the index towards 16,500/16,600 levels while on the downside, there is a support at 16,000 levels.
Top Gainers and Losers
• Eicher Motors gains over 8 percent during the week as sentiments remained buoyed over the strong sales in July 2021
• Bharti Airtel continues the winning streak for straight fourth week; stock gains 8.2 percent as investors bullish over business prospects, tariff hike and customer net addition
• HDFC gains 7.5 percent due to steady business performance in Q1FY22
• Kotak Mahindra Bank gains as company reports decent quarter despite challenging environment
• GAIL (India) stock price surged over 4 percent on Friday post-quarterly results.
• Cipla wiped down all weekly gains and plunged nearly 3.5 percent on Friday post-quarterly results
(Ankit Pareek is Research Analyst at Choice Broking)
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